PhoneTel Technologies, Inc. Reports Third Quarter 1999 Financial Results
CLEVELAND--(BUSINESS WIRE)--Nov. 15, 1999--PhoneTel Technologies,
Inc. (OTC BB:PHNT) today reported financial results for the
three month and nine month periods ended September 30, 1999.
Revenues for the third quarter of 1999 were $20.6 million,
compared to $25.9 million in the prior year's third quarter. Third
quarter EBITDA (earnings before interest, taxes, depreciation and
amortization, other unusual charges and contractual settlements and
extraordinary item) was $1.8 million, compared to $2.1 million in the
prior year's third quarter. The net loss for the third quarter 1999
was $13.0 million, or $0.72 per common share, compared to a net loss
of $10.6 million, or $0.65 per common share, in the third quarter of
1998. The third quarter of 1999 included an extraordinary loss for
early extinguishment of debt of $2.1 million or $0.11 per share.
Revenues for the third quarter 1999 increased $0.6 million when
compared to the second quarter 1999 revenues of $20.0 million. EBITDA
for the third quarter 1999 increased $0.2 million when compared to the
second quarter 1999 EBITDA of $1.6 million. The net loss before
extraordinary item for the third quarter increased $1.0 million, or
$0.06 per common share, when compared to the second quarter 1999 net
loss of $9.9 million, or $0.55 per common share.
In the fourth quarter of 1998, the Company recorded an adjustment
for the retroactive reduction in the rate mandated by the FCC relating
to dial-around compensation. If the Company had restated prior periods
for this reduction in revenues, the net loss before extraordinary item
for the third quarter 1998 would have been $11.4 million, or $0.70 per
common share, compared to $10.6 million for the third quarter 1999.
Adjusting for the change in the dial-around rate, EBITDA for the third
quarter 1998 would have been $1.3 million compared to $1.8 million for
the third quarter 1999.
Revenues for the nine months ended September 30, 1999 were $60.3
million, compared to $75.4 million for the same period in 1998. For
the nine months ended September 30, 1999, EBITDA was $4.0 million,
compared to $7.5 million for the same period in 1998. The net loss
after extraordinary item for the nine months ended September 30, 1999
was $33.6 million, or $1.86 per common share, compared to a net loss
of $27.7 million, or $1.72 per common share for the same period in
1998. As with the third quarter results, if the Company had restated
prior periods for the reduction in the dial-around compensation rate,
the net loss before extraordinary item for the nine months of 1998
would have been $30.0 million, or $1.87 per share compared to $31.6
million for the first nine months of 1999 and EBITDA would have been
$5.1 million and $4.0 million for the first nine months of 1998 and
1999, respectively.
As previously announced, PhoneTel's prepackaged plan of
reorganization (the "Plan") has been confirmed by the U.S. Bankruptcy
Court for the Southern District of New York. Confirmation of the Plan
is among the final steps required to implement the restructuring of
the Company. PhoneTel expects to complete the refinancing of its $45.9
million secured debt and, pursuant to the terms of the Plan, convert
its Senior 12% Notes into approximately 95% of the reorganized
Company's common stock within the next 30 days. Current equity
holders, including the holders of PhoneTel's mandatorily redeemable
preferred stock, will share in the remaining 5% of the new common
stock. |
